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| Hiring, Terminations and Retention |
| Is There a Merger or Acquisition in your Future? Interim accountants can streamline the process |
A merger is never a simple process. Combining budgets, payroll systems, software and general ledgers for two different companies is not a task for the faint-hearted, and certainly not a task for someone who is inexperienced. What if someone who had done it all before could spearhead your company’s merger? We specialize in providing interim accounting personnel for companies who need expertise, but who don’t necessarily need that expertise long-term.
A high percentage of companies fail to thrive after a merger or acquisition, and experts rank poor financial transitions as one of the major reasons. A merger adds a significant accounting workload because in addition to important daily tasks, your accounting personnel must now manage a whole host of additional duties.
It is usually unreasonable to expect financial personnel to be able to pay attention to all of the details of a merger in addition to their daily responsibilities. That is why temporary staffing options are so appealing.
There are many reasons a merger creates increased demands for accounting and finance expertise:
- The due diligence process will require a substantial increase in time invested. An accounting staff will have a mountain of additional work to accomplish as they review financial statements, perform necessary audits, and research assets, clients, and products that are to be acquired.
- Key personnel tend to leave a firm during a merger, especially those who worked for the company being acquired. This can create a “knowledge vacuum” at a time when well-informed financial decisions are most vital.
- If you are merging companies from two different geographical areas, you may encounter difficulty maintaining an employee base as you work to close down operations in one area and expand them in another.
- Integration of technology (combining hardware, software and data from two distinct organizations) is a significant hurdle, especially if there are substantial differences in AP and payroll systems.
There is comfort in knowing that we can provide assistance on two fronts. Not only can we supply personnel with expertise in day-to-day accounting operations, but we can also provide experts with “in-the-trenches” merger experience, who have specialized skills to help you maneuver through all of the strategic decisions. Please contact a member of our team today to discuss details about how we can be of assistance.
Source: Samuel Greengard. “Sending in the M&A Reinforcements.” BusinessFinance Magazine.http://www.businessfinancemag.com/magazine/archives/article.html?articleID=4333
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